Primerica Exam Questions with Correct
Answers
The insurer will pay the full death benefit from the group policy to the beneficiary.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an
individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following
statements best describes what will happen?
It permits the insured to reject the policy with a full refund.
Which of the following applies to the 10-day free-look privilege?
Straight Life
Which of the following policies would be classified as a traditional level premium contract
The same face amount as in the whole life policy.
Under an extended term nonforfeiture option, the policy cash value is converted to
The payable premium amount steadily declines throughout the duration of the contract.
All of the following are true regarding a decreasing term policy EXCEPT
The insured's premiums will be waived until she is 21.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums?
The rider is usually level term insurance.
Which is true about a spouse term rider?
$50,000
, An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his
policy and exercise the extended term option for the policy's cash value, which is currently
$20,000. What would be the face amount of the new term policy?
Pays dividends to policyowners.
Which of the following is usually true of a participating life insurance policy?
An appointment by the Governor
The Commissioner of Insurance is placed in office by which means?
They are tax free to terminally ill insured.
Which of the following is true regarding taxation of accelerated benefits under a life
insurance policy?
It transfers rights of ownership from the owner to another person.
Which of the following statements is TRUE about a policy assignment?
Reciprocal
Which of the following insurance options would be considered a risk-sharing arrangement?
The policy will terminate when the cash value is reduced to nothing.
If an insured continually uses the automatic premium loan option to pay the policy premium,
Return of premium
When an insured under a life insurance policy died, the designated beneficiary received the
face amount of the policy as well as a refund of all of the premiums paid. Which rider is
attached to the policy?
403(b) Plan (TSA).
Answers
The insurer will pay the full death benefit from the group policy to the beneficiary.
An employee quits his job on May 15 and doesn't convert his Group Life policy to an
individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following
statements best describes what will happen?
It permits the insured to reject the policy with a full refund.
Which of the following applies to the 10-day free-look privilege?
Straight Life
Which of the following policies would be classified as a traditional level premium contract
The same face amount as in the whole life policy.
Under an extended term nonforfeiture option, the policy cash value is converted to
The payable premium amount steadily declines throughout the duration of the contract.
All of the following are true regarding a decreasing term policy EXCEPT
The insured's premiums will be waived until she is 21.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the
optional Payor Benefit rider. If the father becomes disabled, what will happen to the life
insurance premiums?
The rider is usually level term insurance.
Which is true about a spouse term rider?
$50,000
, An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his
policy and exercise the extended term option for the policy's cash value, which is currently
$20,000. What would be the face amount of the new term policy?
Pays dividends to policyowners.
Which of the following is usually true of a participating life insurance policy?
An appointment by the Governor
The Commissioner of Insurance is placed in office by which means?
They are tax free to terminally ill insured.
Which of the following is true regarding taxation of accelerated benefits under a life
insurance policy?
It transfers rights of ownership from the owner to another person.
Which of the following statements is TRUE about a policy assignment?
Reciprocal
Which of the following insurance options would be considered a risk-sharing arrangement?
The policy will terminate when the cash value is reduced to nothing.
If an insured continually uses the automatic premium loan option to pay the policy premium,
Return of premium
When an insured under a life insurance policy died, the designated beneficiary received the
face amount of the policy as well as a refund of all of the premiums paid. Which rider is
attached to the policy?
403(b) Plan (TSA).
